Reuters reported on Monday citing sources that Yunnan Capital, fully owned by the provincial government’s state asset regulator, missed payments of more than 900 million yuan that it had borrowed through two trust products issued by the Harbin-based Zhongrong.

Those missed payments came amid growing fears that financing vehicles used by local governments throughout China, often for vanity projects that ran up large amounts of debt, may start to default this year. (Reporting By Shu Zhang and Beijing Monitoring Desk; Editing by Shri Navaratnam)